The Scottish Government’s plans for a local income tax look to be doomed after finance experts warned they contain a £750m-a-year funding gap and should be ditched

THE Scottish government's plans to replace the council tax with a local income tax (LIT) seem doomed after Scotland's public finance experts warned that the plans contain a £750m- a-year funding gap and should be ditched, writes Tom Gordon.

In the most damaging criticism yet of the plans, the Chartered Institute of Public Finance and Accountancy (Cipfa) and Society of Local Authority Chief Executives (Solace) said the figures do not add up.

Their report warns that as well as a funding shortfall there are questions over the policy's legality. By removing local control over taxation, they warn ministers could "compromise" the existing agreement between councils and government on spending and fall foul of European legislation, which says local councils must have the ability to set local taxes.

They want ministers to extend the four-month consultation on LIT, which officially closed on Friday. They recommend a fairer council tax with more